Last minute negotiations are set to take place today in a bid toresolve the deepening row over a financial settlement forNorthern Ireland.

A warning was issued by the DUP last night saying tomorrow'shistoric devolution day could be scuppered if Chancellor GordonBrown does not come up with a better peace package for theprovince than the one put to Ian Paisley and Sinn Fein's MartinMcGuinness last Thursday.

Mr Paisley and Mr McGuinness are due to take part in furthercrunch discussions with Mr Brown today in a bid to secure bettereconomic support - including cutting the corporation tax to thesame 12.5% rate as the Irish Republic.

Mr Paisley warned that his attendance at Stormont tomorrow - whenhe is due to be sworn in as First Minister - is not guaranteed.

Meanwhile, Sir George Quigley, chairman of the Industrial TaskForce, said cutting the corporation tax is critical to closingthe wealth and productivity gap with the rest of the UK andcatching up with the Republic.----

Deal breaker?

As the hours tick away towards restoration of power-sharing, thelack of a worthwhile financial package could put Stormont indisarray

The restoration of the Assembly was under threat last night afterthe DUP warned of the crucial importance of securing a goodfinancial deal for Northern Ireland.

Chancellor Gordon Brown has been criticised by both the DUP andSinn Fein following a meeting he had with Ian Paisley and MartinMcGuinness on Thursday.

The incoming First and Deputy First Ministers are due to takepart in last-minute talks with Mr Brown today and will reiteratetheir argument for a raft of measures to provide economic supportto the province - including cutting corporation tax to the same12.5% rate as the Irish Republic.

Mr Paisley has threatened that his attendance at Stormonttomorrow - when he is due to be sworn in as First Minister - isnot guaranteed.

Speaking on the BBC's Inside Politics programme over the weekend,he accused the Chancellor of not treating the demands for afinancial package seriously enough.

"We shouldn't have been put into this position," Mr Paisley said.

"All we have to say is: 'Have your little pantomime on Tuesday,but we'll not be there'.

"I want them to get that message - I want them to get the messagethat this is so serious that we can't possibly do justice to ourcountry if we don't get this."

Meanwhile, Sir George Quigley, chairman of the Industrial TaskForce, said that the government is still failing to takeseriously the verdict of unsustainability which it has pronouncedon the economy.

"The parties are fully justified in taking all necessary steps toensure that the Government now delivers an effective economicpackage," he writes in today's Belfast Telegraph.

Speaking last night, the DUP's Jeffrey Donaldson said: "It isimportant that we make progress with the Chancellor in advance ofdevolution being restored.

"What is on the table at the moment is inadequate and GordonBrown knows it. We are determined to push harder for a betterfinancial deal.

"When you consider that the Irish Government has been generous incomparison to our government, it is disappointing.

"Gordon Brown needs to take his eyes off Scotland for a momentand focus on the possibility for success in Northern Ireland. Asfor what will happen on Tuesday, we cannot say at this stage.

"I hope that the events will proceed, but the Chancellor andgovernment need to know that the DUP should not be taken forgranted and we are determined to ensure the best deal forNorthern Ireland."

It is thought unlikely that the row will ultimately disrupt therestoration of the Assembly tomorrow, but the DUP is determinedto lay down a firm marker and make it clear that the problem willnot just go away.

Speaking on the BBC's Politics Show yesterday, Secretary of StatePeter Hain said that the peace dividend on offer from GordonBrown - more than œ51 billion over the next 10 years - would bean excellent platform for devolution.

"I am sure that, when the negotiations are concluded, then theExecutive will be in a very good position to really deliver forNorthern Ireland in the way that people wanted," he claimed.

Speaking after Thursday's meeting, Martin McGuinness said: "Whatis presently on offer in terms of an economic package to reflectthe momentous events politically over the last number of weeksdoesn't come up to scratch. Ian Paisley and I are agreed onthat."

However, he added: "This is all work in progress and we're notgiving up."

The Industrial Task Force, led by Sir George Quigley, and theBelfast Telegraph have both run sustained campaigns for more thana year urging Mr Brown to harmonise tax levels with the Republic.----

Cutting corporation tax must be the cornerstone of package

By Sir George Quigley, chairman of the Industrial Task Force

The Secretary of State's comment over the weekend that all thatneeds to be done is to improve the detail of the economic packagealready announced by the Chancellor shows that the Government isstill failing to take seriously the verdict of unsustainabilitywhich it has pronounced on the economy.

The brutal fact, which no amount of spin can disguise, is thatthe package contains no significant departure from existingpolicy. There is nothing in it capable of shifting the economyonto a new trajectory by achieving a step change in the size andperformance of the private sector.

The parties' major proposal on corporation tax is critical toclosing the wealth and productivity gap with the rest of the UKand catching up with the Republic. The Government's willingnessto move on tax is the acid test of its stated commitment togiving the Executive the means to transform Northern Ireland'sprospects.

The 12.5% tax proposal has already been independently evaluated.The Government has had the results for six months. There is noexcuse for further procrastination.

If there is to be an Investment Conference, the ability to offera competitive rate of corporation tax would be crucial. TheSecretary of State's recent comment that Northern Ireland'scorporation tax regime is even more favourable than the Republicis simply without foundation.

Judging by the Secretary of State's comments at the weekend, theGovernment still intends to fob the parties off with a spiced-upversion of the Varney Review. It would be most disappointing ifthe parties fell for that.

There is no point in having a review unless it is seen to beindependent and open-ended. The Government must also make itunequivocally clear ? now, in advance ? that it has no objection,in principle, to Northern Ireland having a differential rate ofcompany taxation if that is necessary to enable Northern Ireland,given its situation on the island of Ireland, to compete forglobal investment on the scale and of the quality needed torebalance the economy.

The parties are fully justified in taking all necessary steps toensure that the Government now delivers an effective economicpackage.

The new power-sharing government in the North will need to take atough stand against racism and sectarianism, Deputy FirstMinister-in-waiting Martin McGuinness claimed today.

On the eve of the return of devolved government to Stormont,Martin McGuinness said he believed his new power-sharing partnerthe Rev Ian Paisley was committed to making the newadministration work.

He stressed the need for all sides involved in the North'smarching disputes to engage in direct dialogue.

The Sinn Fein chief negotiator said: "I've always believed theway to dilute sectarianism is by a combination of approaches. Thereally important one of all is for people of different politicalpersuasions to work together in a positive and constructivefashion.

"I would hope that Ian Paisley and I have begun to show peoplethat it is possible to do that.

"I think all of that will have a very positive effect on peopleout there in our community who will see that it is possible forpolitical leaders who want to totally and absolutely rid oursociety of sectarianism and racism.

"I also think that that must be coupled with ensuring that ifpeople are behaving in a racist or sectarian fashion they areeffectively brought before the courts.

"I think we need to be strong on all fronts and we need to sendout a very strong message to everybody that we are not preparedto tolerate that type of situation within what will hopefully bea whole new society evolving over a period of time.

"It is not going to happen overnight but I think principally byleading from the front and leading by example we can send apowerful message to everybody about how we want this society toshape up."

Mr McGuinness and Democratic Unionist leader, the Rev Ian Paisleywill be sworn in tomorrow at Stormont as the joint heads of thenew Stormont government.

Taoiseach Bertie Ahern and British Prime Minister Tony Blair willattend the opening session of the devolved Assembly to witnessthe transfer of power to the new team of unionist and nationalistdevolved ministers.

However, one of the first potential problems the new executivecould face would be a tense marching season this summer inflashpoint areas like the Ardoyne in north Belfast, Whiterock inthe west of the city and Portadown's Garvaghy Road.

Mr McGuinness said rival sides in marching disputes should drawinspiration from the way the Democratic Unionists and Sinn Feinstruck their deal in March to revive power-sharing.

"It shouldn't be beyond the collective wit of all of us - andwhat I mean by all of us is society in general - to try andresolve those matters," he argued.

"I consistently point to what happened in my hometown of Derrywhere it was clear there were people within the unionistpolitical parties and republican political parties, in Sinn Feinand the community, who were prepared to roll their sleeves up andget involved in an engagement which resulted in many of thedifficult parades there being resolved as a result of dialogueand discussion between those involved.

"Obviously people's thoughts turn immediately to how do weresolve the Garvaghy Road?

"The only way to sort out the Garvaghy Road is to have a realengagement between the people in the Orange Order and the peopleof the Garvaghy Road because at the end of the day it is going tobe up to the people of the Garvaghy Road who have to live in thatarea how they are going to deal with that situation.

"Nobody, not me, not anyone else can tell them. They have to, asI believe they are willing to do, see a willingness on behalf ofthe Orange Order that they are prepared to treat them with therespect they deserve and sit down and have a meaningfuldiscussion and dialogue with them.

"Look at the events here the weekend of March 24-26. Once thediscussion and dialogue began between the DUP and Sinn Fein, wemoved very rapidly over a two day period to make agreements andit manifested itself in this building, to the surprise of loadsof people, in the images we saw the following Monday morning.

"Face-to-face talks made that happen."

Having served as Education Minister in the last executive, MrMcGuinness said he was relishing returning to devolved governmentand admitted to feeling deeply frustrated by the collapse ofpower-sharing in 2002.

The experience of preparing for power-sharing with the Rev IanPaisley over the past six weeks has been encouraging, he said.

"I said on a number of occasions in the run-up to the electionthat whenever Ian Paisley agreed to go into the institutions thatit was certainly not my view that he was going in to walk out ordo what David Trimble did - be fixated about the UUP in the wayDavid Trimble was fixated about the DUP.

"I was of the view he was going in to make it work. You can onlyjudge people on the experience that you have had. Certainly fromthe experience we have had in the period from March 26 through totoday everybody is entering on this journey in a spirit of beingpositive and constructive and wanting everything to work. I thinkthat is very encouraging.

"My experience of the last few weeks is that people are embarkingon this with a view that, yes there will be problems but it isour job to cohesively try and sort these problems out.

"I think the events of the last couple of weeks have been arevelation to people, because the difference now is that IanPaisley is involved.

"Ian Paisley has shown leadership. Ian Paisley has takencourageous decisions in terms of moving into these institutionsand in my opinion has shown good leadership.

"We all have to do that. We all have to work hard at this new andbetter opportunity to move forward and provide a better futurefor the people we represent.

"There are lots of difficult issues out there. I am not the sortof person who shirks a challenge and I also think Ian Paisleyisn't the sort of person who shirks a challenge. Our job now isto deliver."

On the first anniversary of Catholic teenager Michael McIlveen'ssectarian murder, his relatives have had a warm reunion with theex-DUP mayor who attended the 15-year-old's funeral.

The meeting between Councillor Tommy Nicholl, the victim'smother, Gina, and his uncle, Francis, took place in People's Parkin Ballymena, a neutral location in the divided Co Antrim town.

Michael, who lived in an area of Ballymena called Dunvale, wasbrutally attacked by a gang during the early hours of a Sundaymorning as he was on his way home from a pizza parlour.

There was cross-community revulsion at the killing and, amidtheir grief, Michael's family hope some good has come from hisdeath. It occurred, ironically, one year to the day before IanPaisley and Martin McGuinness take power at Stormont.

Tomorrow at 8.10pm, the time that Michael lost his battle forlife a year ago, representatives from both sides of the communitywill release helium balloons in his memory from the basketballcourt in the Dunclug estate where he used to play.

Mr Nicholl's attendance at the Catholic funeral ? he was mayor atthe time ? was a break with convention among the DUP inBallymena. His visit to the family home and a similar visit byIan Paisley, when the DUP leader prayed with the McIlveens, wasinterpreted by some observers as a key moment in reconciliationfor the province.

This month's reunion between the McIlveens and Mr Nicholl, in IanPaisley's heartland of Ballymena, was arranged for a Dutch filmcrew from a current affairs programme called Netwerk. Thevisiting TV team wanted to know whether the killing had become aturning point for the town and a symbol of reconciliation inNorthern Ireland.

Mr Nicholl told the Dutch crew that he wept when he heard ofMichael's death.

"It was a very emotional time. I felt the killing brought theborough to a new low. As mayor and first citizen, I realised Ihad to show true civic leadership," he said.

Michael's mother, Gina, was present for the meeting with MrNicholl, but did not want to speak on camera to the Dutch team,such is her ongoing sense of trauma at the loss of her son.

His uncle, Francis, said that he was keen to see Mr Nichollagain, in recognition of the DUP man's unequivocal public displayof support for the family at the time of the killing.

"It was nice to see Tommy Nicholl again, he is a great guy. Hewas at the house, he was at the funeral," Mr McIlveen said. "MrNicholl is an outspoken councillor on behalf of bothcommunities."

Mr Nicholl is no longer mayor of Ballymena, but remains one ofthe DUP's most loyal members in a council where six out of a teamof 14 councillors have quit the party to protest the DUP's power-sharing deal with Sinn Fein.

Francis McIlveen said that his family had no interest inpolitics, but they had appreciated the support from Mr Nicholland Mr Paisley, as well as other politicians including MarkDurkan and Martin McGuinness.

"The police were also very good. Superintendent Terry Shevlin wasout at the house several times," he said.

Mr Nicholl was appalled at the killing, which occurred monthsafter he had launched the so- called Mayor's Initiative to combatwhat he believed was a sectarian crisis in the borough.Ballymena's reputation had been taking a battering on theinternational news, he said.

Speaking in support of Mr Paisley's deal with Sinn Fein, MrNicholl added: " I have great hopes for the future and wouldfully support what the DUP is doing at a higher level for ourchildren and grandchildren."

Civil servants will no longer be able to dictate how NorthernIreland is run, the Rev Ian Paisley insisted today.

As he prepared to be sworn in as First Minister tomorrow at thestart of a new era of power sharing, the Democratic Unionistleader warned devolved ministers would inherit a number of hugechallenges from the Northern Ireland Office.

"Out there, there is great hype right now where everybody seemsto think everything is wonderful," he said.

"What I am trying to say as First Minister is this: Look, we'renot in paradise. We have all these problems to solve and we needevery degree of courage and stickability we can get to face up tothese challenges.

"Many of the problems are not of our making but are the making ofsquatters (Northern Ireland Office ministers), as I call them,from outside our country who flew in and flew out of here."

"Some of them did not stay very often over the whole year - maybethey stayed overnight six times in a year. As a result, we'vebeen run by civil servants. Civil servants had too much powerbecause their ministers weren't there.

"The civil servants must realise now that their masters havecome. Some of them will not like it but we will be opening thebooks. We will be seeing it as it is and if it is anything likewhat I think it is, then we have a very tough road ahead of us."

The incoming executive has been engaged in tough negotiationswith Chancellor of the Exchequer Gordon Brown to secure afinancial package to bolster the new devolved government.

They also want economic measures that can help remodel theprovince's economy.

The First Minister Designate said the scale of the challengesfacing the new devolved government meant it was essential theChancellor improved on his offer of a ?36 billion peace dividendover four years.

"There's no use having a nice vehicle sitting in your driveway ifyou haven't the fuel to put into it," the North Antrim MPexplained.

Mr Paisley said the Northern Ireland economy needed to bereshaped, moving away from its heavy reliance on the publicsector.

The Green Party leader says Michael McDowell has a responsibilityto put the information he has about the Taoiseach's finances intothe public domain.

Trevor Sargent also believes the T naiste's leadership of theProgressive Democrats is in question following yesterday'sevents.

He says the sooner Bertie Ahern makes a statement about hisfinances, the better.

"Michael McDowell also has a responsibility in the nationalinterest to put the information he has into the public domain, sothat the statement from Bertie Ahern can be judged in the contextof what Michael McDowell knows," he said.

Sinn Fein President Gerry Adams and the party nominee for thepost of Deputy First Minister Martin McGuinness were today joinedby other members of the Sinn Fein leadership including MPMichelle Gildernew at the commemoration in Galbally County Tyroneto mark the 20th anniversary of the deaths of 8 IRA Volunteers atLoughgall.

Speaking from the event in his Mid-Ulster constituency MrMcGuinness said:

"We must never forget the sacrifices of many republicans andtheir families in the course of the last 35 years. Their courageand their integrity are beyond question. Ireland has undergonemany changes in the twenty years since the events at Loughgallwhich saw the deaths of eight IRA volunteers and a civilian in anSAS operation. There remain many unanswered questions about theevents of that evening and they are questions that the familiesof those killed are entitled to be answered.

"Just as Ireland has undergone many changes sine 1987 so to hasthe Republican struggle. The IRA have taken courageous decisionswhich I believe have advanced and strengthened our struggle andwhich open up for the first time since partition a democratic andpeaceful path towards Irish unity and independence. Republicansare now on a political offensive. The challenge for Sinn Fein isto deliver on the undoubted potential which now exists.

"The new power sharing Executive which I will jointly head withIan Paisley will begin its work on Tuesday. We are determinedthat this latest political initiative will not fail. We want tobuild a new relationship with unionists on this island. We wantto demonstrate to them the benefits of sitting down and resolvingproblems ourselves and overcoming challenges without the need orinterference of British Ministers with no mandate in Ireland.

"In the coming weeks we have an opportunity to bring our uniqueRepublican analysis to the doorsteps in the South during theelection campaign and into the government in the North. I amconfident that people will once again respond in large numbers.Sinn Fein stand on the verge of holding real and meaningfulpolitical power. It is political power that we will use to make areal difference to people's lives and all of the time ensure thatour struggle moves forward.

"Sinn Fein are up for the challenges which lie ahead. We willbring to all of this our desire to overcome difficulties while atthe same time setting all of our work within the context of ourprimary political objective which is to deliver Irishreunification and a genuine process of national reconciliation onthe island." ENDS

A QC representing the Attorney General was due to begininterviewing witnesses in Belfast today to find out if the NIOhid evidence to cover up an illegal deal with the DUP.

Peter Scott QC has made special arrangements to interview one offive witnesses on the bank holiday for his review linked to theappointment of the Victims' Commissioner.

The review was sparked by a High Court judge's concerns that theNIO attempted to pervert the course of justice by hiding PeterHain's decision to appoint Bertha McDougall to the post as afavour to the DUP.

Two other witnesses will be interviewed in Belfast later thisweek, and two other witnesses will speak to Mr Scott thefollowing week.

Mr Hain is not the witness being interviewed today, although itis not clear if he will take part in any of the followinginterviews.

Mr Hain pledged the NIO's full co-operation with the review whenit was launched in December, but officials consistently refusedto discuss what role the Secretary of State may play in it.

They say the interviews are "a matter for the review".

Mr Scott's review team has so far refused to give any details ofits work, referring all questions to the Attorney General'soffice.

Last year Lord Justice Girvan criticised Mr Hain and his two mostsenior civil servants for their handling of the court case aboutMrs McDougall's appointment.

He said the NIO had relied on "obviously misleading" informationto defend the appointment of Bertha McDougall. He said Mr Hainhad illegally appointed Mrs McDougall as a sop to the DUP.

The judge said evidence showed there could have been an attemptto pervert the course of justice during the case - saying that"for some reason it was decided within Government that incorrectand misleading information would be supplied" to the court.

Mr Hain has welcomed the review, insisting there was "noquestion" of an attempt to deliberately mislead the court.

Mr Scott's interviews are follow-ups to detailed questionnaireshe submitted to 17 witnesses about the case.

Those questionnaires are believed to have been based on 67questions Lord Justice Girvan posed about the NIO's conduct inone of his rulings.

Mr Scott's review is being taken to the High Court next week byBrenda Downes, the Belfast widow of Sean Downes who was killed bya plastic bullet in 1984

She is asking the court to order Mr Scott to give her updatesabout his work and access to the documents he has received.

Mr Scott has offered to meet Mrs Downes, but has turned down herrequest for details about how he is conducting the review.

Next week could see a preliminary hearing of Mr Hain's appealagainst the original ruling that declared Mrs McDougall'sappointment illegal.

He's a poet, a fisherman, a chess-player, a family man describedas considerate and thoughtful, somebody who cares about natureand the environment, passionate yet even-tempered.

He enthuses about nature, especially the rugged heaths ofDonegal: " Purple-heathered hillsides clothe the peaty bogs,leaching streams of water, swimming pools for frogs." He's goodat relationships and a conspicuous success at most things.

But no, this is not some dreamy, liberal luvvy: this is MartinMcGuinness, icon of republican militancy. That poem, which isbeing auctioned this weekend in south Armagh, is dedicated to arepublican who was shot dead. From Tuesday, McGuinness will berunning Northern Ireland together with the Rev Ian Paisley.Unlikely is far too mild a word to describe this emergingpartnership between two lifelong adversaries, the dedicatedrepublican and the staunch loyalist.

Yet last week they astonished Belfast by conducting a newsconference together - joking, joshing and exuding large amountsof twinkling geniality. Later they sat side by side in Edinburghpressing Gordon Brown for more funds. "Martin is a peopleperson," according to one who works closely with him. "Peoplewarm to him: they just do. It's early days, but he and IanPaisley are just getting on with the business. It's astonishing."

The week brought extraordinary displays of an entirely newpolitical tone. Circumstances have brought the two together inscarcely conceivable coalition and - so far at least - theirrelationship has proved uncannily amicable. Yet it should come asno surprise that McGuinness can forge close ties with people. Hisrelationship with Gerry Adams, President of Sinn Fein, has provedcrucial in persuading their republican movement to shed manyoutdated practices.

Together they have recast a party, previously hidebound by thepast, into Ireland's most pragmatic political outfit. During manytense moments it was the McGuinness reputation for flinty, sea-green incorruptibility that reassured traditionalists Adams wasnot moving too far, too fast. In the past decade the tworepublicans forged a key working relationship with Tony Blair,becoming frequent visitors to Downing Street and Chequers. No onesuggests complete trust exists, but Blair and the republicanshave taken chances with each other.

McGuinness was not always in the business of twinkling geniality,or of making friends and influencing people. He began as atrainee butcher, packing bacon in a Derry butcher's shop. In theearly 1970s, when Northern Ireland and Derry exploded intosustained violence, conventional life ended for him and he gaveup his job packing bacon in a butcher's shop. He was still ateenager when he turned full-time to guerrilla warfare, risingquickly to a high position within the IRA. His units did a greatdeal of damage to the city with a campaign that made it look, inthe words of one observer, as if it had been bombed from the air.

The British Army in particular had cause to regret hisstreetfighting skills: it lost more than two dozen soldiers,gunned down on Derry streets. He himself dodged many bullets,once admitting that he had been "fired at by the British army oncountless occasions over 20 years". He also managed to avoid adetermined loyalist assassin who was intent on killing him. Hewas good at evading the law, serving just two short prisonsentences. He often, however, saw the inside of policeinterrogation centres, fending off detectives determined to makehim crack.

He was high in the IRA from an early age, and was only 22 whenthe Government smuggled him and other republicans over to Chelseafor secret talks. The meeting was unproductive, the authoritiessaying he and other IRA leaders had presented "impossible demandsand absurd ultimatums".

Many years went by without McGuinness budging, and with the IRAfighting its long war, the death toll mounted. Sinn Fein madelimited political progress, but remained outcasts as IRA violencewent on. McGuinness remained adamant that any ceasefire would beseized on by Britain as a sign of weakness. He once declared thatno section of the republican movement "believes that the freedomof Ireland can be won only through political involvement inconstitutional politics or in elections".

This was back in the days when Ian Paisley was fighting electionsholding a sledgehammer under the slogan "Smash Sinn Fein". Butthat was then, this is now: today Paisley has no sledgehammer.McGuinness has no IRA any more, and is commited to the idea thatthe freedom of Ireland can be achieved without it. Somewhere overthe years he morphed from the icon of militarism into thepolitician of today who has been seasoned by meetings withBritish, Irish and American representatives.

Republicans retained their faith in his integrity and apparentrefusal to compromise, but as time passed both he and they gotdeeper into politics, the business of negotiation, and give andtake. It has brought him to this once inconceivable point wherehe will be No 2 in government. But no one believes he cares aboutreaching office for its own sake, or making money, or that he hasgiven up on the republican goal of a united Ireland.

Life is hectic for him. About to become a senior minister, he isa Westminster MP, a member of the Belfast Assembly, and hisparty's chief negotiator. He is also spending much time in thesouth of Ireland where he is canvassing in the general election.In a previous Stormont administration he was regarded as the bestof the 10 departmental ministers, impressing officials andpolitical rivals alike with his performance as educationminister. "He was the best of the lot," said a Unionist opponent.

The surprise at his success in the education brief was all thegreater since, like Adams, he left school at an early age,without much education. His schedule leaves him with little timefor fishing or chess, and little enough time with four childrenand five grandchildren. While his verse may not rival that ofSeamus Heaney, he has shown versatility, proving proficient inIRA activities, politics, negotiation and now high public office.

His last spell in government did not last long, falling apartbecause of IRA misbehaviour. But now the organisation he oncehelped to lead seems to have gone away, with republicans nowprepared to rely on McGuinness's political skills rather than hismilitary prowess. When it became clear that a McGuinness-Paisleypartnership was in prospect it was said it would be " a battle aday". But they are conducting themselves with good humour,without rancour.

Last week Paisley declared: "We have many problems but we areseeing a light and are directing our footsteps towards not justsunlight but I trust full sunshine." If this new rhetoric is anyreflection of reality then the remarkable career of MartinMcGuinness is about to enter yet another new phase, this time ina transformed political scene.

David McKittrick is Ireland Correspondent for the Independent(London) .

The eyes of the world will be on Northern Ireland tomorrow as thenew Stormont executive is sworn in. The agreement between the DUPand Sinn Fein to share power is a truly ground-breaking movewhich creates the potential for Northern Ireland to move into adynamic new era.

The decision by the Government to allow the parties a six-weekbreathing space following the joint press conference by the RevIan Paisley and Gerry Adams has been vindicated. The hiatus hasallowed the politicians to develop a working relationship and hasenabled the public to come to terms with the enormity of what ishappening.

Since March 26 there have been many dramatic images, such as MrPaisley shaking hands with Bertie Ahern, and more recently, MrPaisley and Martin McGuinness jointly welcoming EuropeanCommission President Jose Manuel Barroso to Stormont. Behind thescenes, the foundations have been laid for an administrationwhich should be able to deliver good government.

The omens are good but the question remains as to whether it willall work. Despite the bonhomie, will the executive turn out to bea battle a day once the divisive issues arise?

Can republicanism and unionism start to build on what unitesthem, rather than focus on what divides them? Will newly sworn-inministers be up to the job of running their departments?

Although the rhetoric and body language have changed, challengeslie ahead. The economic package has failed to live up toexpectations and crucially, the Treasury has so far been foundwanting on the key issue of corporation tax.

Without structural changes it is difficult to see how theexecutive will be able to produce the step-change which theNorthern Ireland economy needs. Once it is up and running, theexecutive must intensify pressure on the Chancellor formeaningful measures to be introduced.

That said, the positive images which will go round the worldtomorrow should act as a spur for investment in the province. Thewar is over, as both the IRA and the UVF have testified, and thecreation of partnership government should create a new climate ofpeace and prosperity.

The political landscape has changed, but this transformation hasnot taken place overnight. It has taken long years of patientdiplomacy by many people and as Messrs Paisley and McGuinnessenjoy the limelight tomorrow, nobody should forget thecontribution made by David Trimble and Seamus Mallon in the firstexecutive.

As everyone at Stormont tomorrow will recognise, politicalagreement is just another step on Northern Ireland's journey fromdarkness to light. Not until sectarian divisions are erased andall the peacelines dismantled will the new Northern Ireland beable to reach its full potential.

The long-awaited UVF statement on disarmament is a step in theright direction, but it does not go far enough. If the UVFgenuinely intends to turn its back on violence, arms must beverifiably decommissioned and not just "put beyond reach",whatever that phrase means.

Certainly, everyone should welcome the fact that the UVF and RedHand Commando have vowed to switch to a "non-military,civilianised" role. More than 12 years after declaring aceasefire, two of the most violent of paramilitary organisationshave finally acknowledged that further paramilitary activityserves no purpose.

But as Peter Hain says, actions will always speak louder thanwords. The rhetoric must now be followed up by a seriousengagement with the Independent International Commission onDecommissioning with a view to the dismantling under supervisionof all the loyalist armoury.

An organisation which was responsible for 20 murders andcontinued to target and threaten people during the period it wason ceasefire cannot expect to have its statements taken at facevalue. The best way for the UVF to show that it means what itsays will be to involve the IICD.

Despite what Gusty Spence may say, "trusting the rust" is nosubstitute for trusting the angle-grinder. The people of NorthernIreland, unionist and nationalist, will be satisfied with nothingshort of disarmament, decommissioning and disbandment by both theUVF and RHC.

Significantly, yesterday's statement addresses the ongoingproblem of criminality. It is encouraging that the UVF is"reaffirming" its opposition to criminality and calling for co-operation with the police, and this message must be heeded.

The support proffered to restorative justice projects should bebuilt upon, but it is vital that the PSNI is fully involved inany such schemes and that the process of law is not ignored. Thepolice must retain control in all areas.

The dynamic in Northern Ireland has changed and those who haveworked to develop new thinking in the UVF - not least of all thelate David Ervine - deserve credit. Now the pressure must beintensified on other loyalist organisations, most notably theUDA, to follow suit.

In the new political dispensation, which will see the DUP andSinn Fein sharing power at Stormont on Tuesday, there is no placefor guns or army councils, loyalist or republican. The war isover, and private armies have no role to play.

When the new Assembly takes office, people in Northern Irelandwill at last dare to believe that a new era is dawning in whichharmony will replace hatred. The UVF is making a welcomecontribution to this process but it cannot afford to stop there.If this really is a fundamental change, the arms must not just bedumped, but destroyed.

For obvious reasons, there will be far more interest than usualin the Republic's general election on May 28.

On it depends the future of the Fianna Fail-PD coalition, whichhas co-operated so successfully with the British government onthe peace process, and the seemingly unstoppable rise of SinnFein.

If both come through strongly, Northern Ireland will stay high onthe agenda in Dublin, if not in London, after the retirement ofTony Blair. But if the southern voters refuse to back Mr Ahernfor a record third successive term and Gerry Adams fails toincrease Sinn Fein's representation substantially - from thepresent five TDs - a pause could be expected in the changestaking place in Northern Ireland politics.

As it is, events here and in Britain over the next few weeks arebound to have a considerable impact on the Irish election. NextTuesday, Sinn Fein will take its place alongside the DUP at thehead of a Stormont executive, attracting world-wide publicitythat must improve its image as a fully-democratic party. Butdespite its growing acceptability in Northern Ireland, memoriesof its past persist in the Republic, where one recent opinionpoll showed a mere 1% gain.

Much will depend on the ability of Gerry Adams, a non-residentnon-candidate who is leading Sinn Fein's campaign, to appeal tothe natural Labour supporters who have failed to benefit from theCeltic tiger economy. Although economists deride his "voodooeconomics", including an increase in the 12.5% corporation taxwhich Northern Ireland covets, Sinn Fein has a habit ofconfounding the experts when the votes are counted.

The choice, as Mr Ahern presents it, is between a continuation ofthe present coalition, tried and tested over 10 years, and anexperimental combination between Fine Gael, Labour and the GreenParty, which would have difficulty forming a coherent government.He rules out Sinn Fein as a partner, because of its threat to theFianna Fail vote, but if the PDs failed to come up to the mark,few believe that his veto on Sinn Fein would stand. While hemight not include republicans in government, a guarantee ofsupport would give them influence.

Whoever wins, and the polls show growing discontent withaccusations of government sleaze, the peace process will continueunabated and all the cross-border institutions will survive. Yetif there is a change of government in Dublin, as well as a newPrime Minister in London, a period of reflection may benecessary.

That may be no bad thing, as people here try to absorb theenormous changes in the local political scene. With Labour aboutto suffer killer blows in the Scottish and local elections,achieving stability at Stormont should be the main priority.

Dog law must have bite

Our revelation today that the USPCA is having to hand two pitbull dogs back to their owner should set alarm bells ringing atStormont and at Belfast City Council.

For the saga potentially reveals a muddle at the heart of policyon dangerous animals.

The south Belfast man who owns the dogs is demanding them back,via his solicitors, and is presumably claiming they are not pitbulls.

However, the USPCA has assessed the animals and has judged themto be pit bulls. As it is illegal to own pit bull terriers inNorthern Ireland, one would be forgiven for thinking that theauthorities could refuse to hand the dogs back: full stop.

But, prosecution powers lie with Belfast City Council and theUSPCA apparently has no legal reason to refuse the pit bullowner's demand to return the dogs.

This is a classic case of enforcement of the law on a seriousissue falling between two stools.

In the case of the pit bulls due to be handed back today, BelfastCity Council should take immediate steps to ensure that the lawis complied with. But in the longer term, the authorities mustensure they lay the foundations for a joined up approach to thisissue.

While they are doing that, they should widen the legal definitionto clarify the law on 'pit bull-style' dogs as well.

What a furtive and shabby way to bring a Dail to an end andlaunch an election.

An Taoiseach Bertie Ahern scurried up to Aras An Uachtaran soearly on Sunday morning that the only people on the streets tosee his shiney state car whizz by were the newspaper sellers,busy laying out on their stalls for early Massgoers.

He has been accused of receiving substantial payments fromproperty developers in the 1990s. He denies any wrongdoing.Selected journalists got a text message from one of Bertie'sexpensive apparatchiks at around pub closing time on Saturdaynight. They were told to be on two hours standby for the next 48hours. At 6am a second text message told them to get themselvesto the Phoenix Park.

When they got there, they witnessed the most bizarre dissolutionof the Dail.

The president might have been in her dressing gown only for thefact that she was rushing out the door for the airport for ascheduled official visit to the US.

She just had time to sign the papers.

Then Bertie put on his cheeky face to wave goodbye to thephotographers.

No questions were allowed.

No questions at the launch of his election campaign later onSunday morning either. A press release full of spelling mistakesand a brief scripted speech. Bertie was on the run. Judge AlanMahon announced yesterday morning that he would suspend hearingsat the inquiry until after the election on May 24. He couldhardly have done otherwise.

The taoiseach had already indicated disapproval of the judge'spreviously declared intention of proceeding with his inquiryuntil two weeks before the date of the election. Ahern sniffedthat there was precedent on these matters.

He has no such qualms when it comes to putting himself in thelimelight when he is cast as the star. He deserves his moment ofglory at the do at Stormont next week. After all, he played hispart well in the wearisome years of work that went into haulingIan Paisley out of the apocalyptic mire of sectarian ranting and17th century battles and into 21st century politics. But couldn'tthey find seats, even if they're not in the front row, for theleaders of the Republic's opposition? They've defended the GoodFriday Agreement too.

The frolic on the banks of the Boyne with Paisley could havewaited and he will have to hope there are no barbed remarks fromthe old prophet of No Surrender.

The DUP will have noted his weekend attempt to fend off theShinners by declaring that Fianna Fail will work in the next Dailto unite Ireland.

But the address to the British Houses of Commons and Lords on May15, just nine days before the Irish elections, is pushing it.Tony Blair badly needs the halo that the northern Irish peaceprocess has provided for him to distract from other dramatic andappalling failures of his long years as prime minister. Aherncould do with it too but to take part in such a showpiece eventin the middle of an election is hardly playing fair.

RTE, which is obliged to monitor precisely the amount of time itallocates to each of the parties, will be hard pressed to sortout what counts as party political broadcasting and what doesn't.Ruari Quinn is right the Brits should postpone the event untilafter polling day. Ahern will still be taoiseach at least untilthe formation of the next Dail.

How hilarious that Sinn Fein has sprung to defend Ahern's rightto the great honour of addressing the British parliament. Perhapsthe party will even decide to complete the wondroustransformations of our times and turn up at Westminster on theday to claim their seats for the show.

Mary Lou McDonald threw in that she hoped the taoiseach would usethe occasion to talk about Irish reunification and to call on theBrits to come clean on the Dublin-Monaghan bombings. As if.

This is the man who last week had a meeting with PUP leader DawnPurvis and, according to her, didn't even raise with her theissue of the UVF's fresh spate of death threats against more than100 northern Catholics. He is shameless is our Bertie.

Residents in a Co Louth village were told not to use their watersupply after a well was found to contain levels of arsenic.

Householders in Faughart, on the border outside Dundalk, receivednotification by letter from Louth County Council at the end oflast week to take precautions when using the water after lowlevels of arsenic were detected in the supply.

The source is believed to be naturally occurring in the area andis located in private wells.

The scare is at this stage localised to one property's well andbelieved to be isolated.

Louth County Council organised the provision of water provided bythe fire service for residents in the village that is famous forbeing the birth place of St Brigid and attracts pilgrims everyday.

In the centre of the village there is a shrine dedicated to StBrigid with a holy stream that flows through it.

The stream is said to have healing properties.

Theo Henry, who lives in the area of the scare, said there wasconfusion among residents about the areas of the supply affected.

"The first I heard about it was when a neighbour came up with theletters that had been delivered," Mr Henry said.

"We have got no word of anything from the council but all thehouses around us have.

"Apparently they are going to test 110 wells on Tuesday.

"I have been using my well for over 25 years and anotheroverground

system that has been there for more than 100 years.

"I changed my pump system about five years ago and everything hadto be checked to get the grant and we were given the all-clear sowe have been using the water, what else are you supposed to do?You have to wash and shave and the rest.